Why Are Millionaires Pulling Cash Out While Their Numbers Keep Rising?

Bangladesh’s banking sector is witnessing a paradoxical situation: the number of millionaire bank accounts is rising, yet the total money stored within these accounts is declining at a noticeable pace. This unusual combination has sparked fresh debate among economists and financial analysts, who believe that the trend reflects deeper concerns about the financial environment.

Bangladesh Bank’s recently published report reveals that the number of millionaire accounts — accounts holding deposits of at least Tk 10 lakh — has continued to increase quarter after quarter. From March to June, the sector added 5,974 new millionaire accounts. In the following quarter, between June and September, a further 734 accounts joined the list.

However, during the same three-month period, the total deposits held in these accounts dropped significantly. This has led experts to suggest that established wealthy individuals are withdrawing money from banks, possibly due to concerns over currency depreciation, inflation, and uncertain economic conditions. Meanwhile, those newly entering the millionaire bracket tend to have smaller balances, meaning they contribute to the rising number of accounts but not to overall deposit growth.

Bangladesh Bank’s data shows that the country had 127,336 millionaire accounts at the end of June. By September, this had risen modestly to 128,070 — an increase of 734 accounts. By contrast, the number of millionaire accounts recorded in March stood at 121,362, illustrating that growth has been consistent for several quarters.

At the same time, the number of bank accounts in the entire sector has grown significantly. In June, the total number of accounts stood at 169 million. By September, this had climbed to nearly 174.6 million — a jump of 5.59 million accounts in just three months. This growth is largely attributed to financial inclusion programmes, digital banking expansion, and easier access to basic banking services.

Despite the decline in millionaire deposits, overall deposits in the banking sector have increased. The sector added Tk 34,536 crore in deposits between June and September, bringing total deposits to Tk 20,31,119 crore. This indicates that ordinary depositors and mid-income earners are contributing to the increase, even as some wealthy individuals withdraw funds.

Experts argue that the behaviour of the wealthy signals a lack of confidence. Several factors may be contributing:

persistent inflation reducing the real value of bank deposits,

declining interest rates making savings less attractive,

economic uncertainties prompting diversification of assets,

and concerns about the health of certain banks.

Some affluent individuals are believed to be investing more in property, gold, and foreign currency holdings, which they perceive as safer or more profitable than bank deposits.

On the other hand, the rise in new millionaire accounts suggests that economic mobility has not stalled entirely. Certain sectors — including textiles, IT services, and small manufacturing — have contributed to the rise of new high-earning professionals and entrepreneurs. However, their deposit volumes remain modest compared with long-established wealthy groups.

This dual development — a growing millionaire class but declining millionaire deposits — highlights important questions about economic trust, capital distribution, and financial behaviour. It serves as a vital indicator for policymakers, suggesting that while broad economic activities continue, wealthier individuals are increasingly cautious about leaving large sums in the formal banking system.